# Equivalent Annual Cost (EAC) Calculator

Item AItem B
Investment Cost
Maintenance Cost

## Enter Cost of Capital

%

### How does the Equivalent Annual Cost (EAC) Calculator work?

Free Equivalent Annual Cost (EAC) Calculator - Given 2 Items/machines with an Investment Cost, expected lifetime, and maintenance cost, this will calculate the EAC for each Item/machine as well as draw a conclusion on which project to invest in.
This calculator has 7 inputs.

### What 1 formula is used for the Equivalent Annual Cost (EAC) Calculator?

v = 1 / (1 + Cost of Capital)
Discount Factor = (1 - vn) / Cost of Capital

For more math formulas, check out our Formula Dossier

### What 4 concepts are covered in the Equivalent Annual Cost (EAC) Calculator?

annuity
A stream of payments
equivalent annual cost (eac)
investment
an asset or item acquired with the goal of generating income or appreciation.
present value
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future Value